In 2013, the Pe帽a Nieto administration successfully pushed for a constitutional reform to reconfigure the telecommunications industry, opening to greater private sector investment and competition. The landmark reform also established the Federal Telecommunications Institute (IFT in Spanish), an independent regulatory authority overseeing Mexico鈥檚 telecommunications industry. The IFT is tasked with regulatory decisions aimed at increasing telecommunications coverage, building efficiencies, and ensuring greater competition in the sector.
Under Morena, however, independent and autonomous regulatory institutions have come under attack. The IFT is no exception. Starting with Andr茅s Manuel L贸pez Obrador (AMLO), Morena has pushed to of regulatory bodies such as the IFT, arguing that they are superfluous, cost too much money, and should be folded into existing executive agencies. (Against the IFT, AMLO said its costs outweighed its accomplishments, especially in breaking up monopolies, ignoring his own close鈥痶o Carlos Slim, CEO of Am茅rica M贸vil.) Claudia Sheinbaum has advanced this argument and is pushing for a vote in Congress on autonomous agencies.
The IFT has had some significant successes. To name a few, it has managed to reduce the price of consumer telecoms by while cutting into the share of Am茅rica M贸vil鈥檚 monopoly on Mexico鈥檚 telecoms market. Thus, eliminating the IFT's independence would harm Mexico鈥檚 ability to expand the fruits of broadband throughout the country and continue attracting investment from the private sector. The private sector, especially Western investors, favors regulatory institutions where decisions are taken independently, and evidence-based policy is the norm鈥攏ot the whims of political parties. By folding independent and autonomous agencies into the executive branch, Morena risks politicizing regulatory decisions that would likely be off-putting for investors and prejudicial to garnering greater private investment in the sector.
The impact on Mexico鈥檚 economy could be significant. Without greater competition in the information, communications, and technology (ICT) sector, Mexico's ability to reach its full potential could be hindered. This is because much of the country鈥檚 future economic growth could be in the digital sector, as acknowledged by including a digital chapter in the renegotiated U.S.-Mexico-Canada Agreement.
Too many Mexicans still lack access to high-quality internet, especially in rural areas. In 2022,鈥痮f urban households had access to the Internet, compared to only鈥痮f rural households. Balanced economic growth will depend upon rectifying this disparity, something the IFT aimed to do with regulatory decisions meant to attract greater investment in Mexico鈥檚 ICT sector. The AMLO and now Sheinbaum governments have strongly advocated the 鈥淚nternet Para Todos鈥 initiative. Still, they prefer the Federal Electricity Commission (CFE) to lead this program in installing greater broadband coverage. Morena has demonstrated little trust in sound policy and private sector investment to lead the way on its strategic initiatives, such as Internet Para Todos, instead favoring a strong role for the public sector.
Yet, Mexico must take steps to promote a competitive ICT landscape that courts private investment, bridges the connectivity gaps between urban and rural zones, and sets the country on the path to achieving its digital transformation goals. To foster this competitive environment, Mexico must strengthen and reaffirm the independence of its telecoms regulatory body鈥攓uite the鈥痮f what Morena has been pursuing under both AMLO and Sheinbaum. Regulatory decisions on issues like spectrum policy could lead to improvements in the competitiveness of the ICT sector; such decisions would be a prerequisite to open the floodgates for investment from private firms and lessen the burden on state resources鈥攅specially important during a time when Sheinbaum鈥檚 government will struggle to close fiscal gaps bequeathed by AMLO.
Major US firms, such as AT&T, would be impacted by the vote to eliminate the IFT. The IFT's inability to set sound regulatory policy, such as on matters of fair competition and spectrum fees, has undercut the impact of investments from private sector firms, contributing to a self-fulfilling prophecy for Morena that the private sector is of no use in fulfilling its digital transformation goals.
Further adding to this self-fulfilling prophecy, AMLO鈥檚 policy toward the IFT vitiated its effectiveness through a strategy of death by a thousand cuts. Beyond , he refused to appoint commissioners. Since 2019, the IFT has operated with only鈥痗ommissioners. Because the Federal Telecommunications and Broadcasting Law鈥痑 qualified majority of five votes to make significant organizational decisions, the lack of appointments to the commission has effectively gutted the IFT鈥檚 ability to carry out its responsibilities and make decisions. Mexico鈥檚 ICT sector needs to become more competitive, with the Institute for Management Development鈥疢exico 54th out of 65 countries considered in its 2023 rankings; instead, Morena is fiddling with the internal governance of the IFT and gutting its ability to issue regulatory decisions.
Beyond the ICT sector, there would be ramifications for US-Mexico relations. As the 乐鱼 体育鈥檚 Diego Marroqu铆n Bitar has pointed out, the elimination of autonomous agencies runs afoul of several provisions in the USMCA, highlighting the necessity of these institutions to key economic sectors. This would likely add further kindling to what could be a contentious mandatory review of the agreement in 2026. The IFT, although probably less well-known than other bodies slated for elimination, would be no exception. Dissolving the IFT would be an unnecessary, self-inflicted error.
*This article was written prior to the approval of the constitutional reform in the House of Representatives on November 20
Author

Mexico Institute
The Mexico Institute seeks to improve understanding, communication, and cooperation between Mexico and the United States by promoting original research, encouraging public discussion, and proposing policy options for enhancing the bilateral relationship. A binational Advisory Board, chaired by Luis T茅llez and Earl Anthony Wayne, oversees the work of the Mexico Institute. Read more
Explore More
Browse Insights & Analysis
360掳 View of How Southeast Asia Can Attract More FDI in Chips and AI
